Justia Civil Procedure Opinion Summaries

Appellant Watkins & Eager, PLLC brought an interlocutory appeal of a circuit court decision. Appellant argued the circuit court erred by denying the firm’s motion to dismiss for failure to state a claim under Mississippi Rule of Civil Procedure 12(b)(6). Appellant contended that the provisions at issue within its operating agreement were structurally unambiguous and authorized the firm to terminate any member, including Appellee Richard Lawrence for any reason whatsoever. Furthermore, the firm opposed Appellee’s attempt to shoehorn a "McArn" exception into this dispute. Reviewing the complaint and the PLLC operating agreement central to the dispute, the Mississippi Supreme Court held that Appellee’s breach-of-contract and wrongful-termination claims should have been dismissed. Appellee also pleaded twenty-eight separate additional claims that emanated from the same alleged breach resulting in Appellee’s expulsion from the firm. To this, the Court found Appellant exercised rights found in the agreement, which were not ambiguous. Accordingly, the Supreme Court found all claims within the complaint failed as a matter of law. Judgment was reversed and the case remanded for the circuit court to enter a judgment consistent with the Supreme Court's opinion. View "Watkins & Eager, PLLC v. Lawrence" on Justia Law

The Supreme Court affirmed the judgment of the court of appeals affirming an order of the circuit court that domesticated a Mexican judgment in favor of Wells Fargo Bank, N.A., and against Daniel and Jane Hennessy, holding that Wells Fargo's judgment against the Hennessys was properly domesticated.On appeal, the Hennessys asserted that the circuit court erred in holding that the foreign judgment was valid and personally enforceable against them under Mexican law and erred in domesticating the Mexican judgment under principles of comity. The Supreme Court affirmed, holding (1) the Wisconsin principle that a foreign country's law must be proven before a circuit court as a question of fact is hereby affirmed; (2) the circuit court's interpretation of Mexican law was not clearly erroneous; and (3) the circuit court did not abuse its discretion by choosing to recognize the Mexican judgment in Wisconsin. View "Hennessy v. Wells Fargo Bank, N.A." on Justia Law

This case concerns three orders purporting to enforce a settlement between the parties in a commercial dispute: (1) an order declaring that Vikas breached the settlement; (2) an order striking Vikas's pleadings as a sanction; and (3) a summary judgment that Vikas had procured the settlement by fraud, causing $40 million in damages.The Fifth Circuit concluded that the district court lacked subject matter jurisdiction to issue the summary judgment for fraud and thus the court vacated the order and denied as moot Vikas's related appeals. The court also vacated the sanctions order based on either lack of subject matter jurisdiction or an abuse of discretion standard. Finally, the court vacated the ruling that Vikas breached the settlement, concluding that the district judge ignored key provisions of the settlement and failed to support his judgment with relevant record evidence. Accordingly, the court remanded for further proceedings. View "Vikas WSP, Ltd. v. Economy Mud Products Co." on Justia Law

In October 2018, a Boeing 737 MAX airliner crashed in the sea near Indonesia, killing everyone on board. In March 2019, a second 737 MAX crashed in Ethiopia, again killing everyone on board. Within days of the second crash, all 737 MAX airliners around the world were grounded. The FAA kept the planes grounded until November 2020, when it was satisfied that serious problems with the planes’ flight control systems had been corrected. The Pension Plan, a shareholder of the Boeing Company, filed a derivative suit on behalf of Boeing under the Securities Exchange Act of 1934, 15 U.S.C. 78n(a)(1), alleging that Boeing officers and board members made materially false and misleading public statements about the development and operation of the 737 MAX in Boeing’s 2017, 2018, and 2019 proxy materials.The district court dismissed the suit without addressing the merits, applying a Boeing bylaw that gives the company the right to insist that any derivative actions be filed in the Delaware Court of Chancery. The Seventh Circuit reversed. Because the federal Exchange Act gives federal courts exclusive jurisdiction over actions under it, applying the bylaw to this case would mean that the derivative action could not be heard in any forum. That result would be contrary to Delaware corporation law, which respects the non-waiver provision in Section 29(a) of the federal Exchange Act, 15 U.S.C. 78cc(a). View "Seafarers Pension Plan v. Bradway" on Justia Law

Eugene Taszarek, Marlys Taszarek, Trina Schilling, Steven Taszarek, and Michael Taszarek (“Taszareks”) appealed a judgment finding Lakeview Excavating, Inc., was not the alter ego of Brian Welken. Welken was Lakeview Excavating’s president and sole shareholder. While working on certain county projects, Lakeview Excavating’s employees took fieldstones from a nearby property owned by the Taszareks to use for the roads. The Taszareks sued Lakeview Excavating and Welken for intentional trespass, conversion of property, and unjust enrichment. The claims of trespass and conversion were tried to a jury. The jury returned a verdict in the Taszareks’ favor, finding Lakeview Excavating was the alter ego of Welken and holding both parties liable for damages. The North Dakota Supreme Court reversed and remanded for a new trial, concluding the district court inadequately instructed the jury on the alter ego doctrine. After a bench trial, the district court found Lakeview Excavating was the alter ego of Welken and ordered the Taszareks could recover damages from either Welken or Lakeview Excavating. The Supreme Court reversed again, concluding the court’s findings relating to piercing Lakeview Excavating’s corporate veil were inadequate to permit appellate review. On remand, the court held an evidentiary hearing and found Lakeview Excavating was not the alter ego of Welken. The Taszareks argue the district court exceeded the scope of remand by holding an evidentiary hearing instead of specifying findings of fact based on evidence already in the record. Finding no reversible error in last of the district court's alter ego findings, the Supreme Court affirmed. View "Taszarek, et al. v. Lakeview Excavating, et al." on Justia Law

A Virginia resident filed an action in Pennsylvania against a Virginia corporation, alleging injuries in Virginia and Ohio. The plaintiff asserted that Pennsylvania courts had general personal jurisdiction over the case based exclusively upon the foreign corporation’s registration to do business in the Pennsylvania. The Pennsylvania Supreme Court agreed with the trial court that Pennsylvania's statutory scheme violated due process to the extent that it allowed for general jurisdiction over foreign corporations, absent affiliations within the state that were so continuous and systematic as to render the foreign corporation essentially at home in Pennsylvania. The Court further agreed that compliance with Pennsylvania’s mandatory registration requirement did not constitute voluntary consent to general personal jurisdiction. Accordingly, the Supreme Court affirmed the trial court’s order, which sustained the foreign corporation’s preliminary objections and dismissed the action with prejudice for lack of personal jurisdiction. View "Mallory v. Norfolk Southern Railway" on Justia Law

This appeal arose from a dispute over a Stock Purchase Agreement (“SPA”) formed between Valley Joist BD Holdings, LLC (“VJ Holdings”) and EBSCO, Industries Inc. (“EBSCO”). In December 2017, EBSCO sold all of its stock in Valley Joist, Inc. to VJ Holdings. After closing, VJ Holdings discovered structural defects in one of the buildings acquired as part of the transaction. In July 2018, VJ Holdings sought indemnification from EBSCO through the procedure outlined in the SPA. Two years after receiving no response to the notice, VJ Holdings filed suit in the Superior Court for breach of contract and fraud in the inducement. The Superior Court granted EBSCO’s motion to dismiss the fraud claim for failure to plead sufficient facts to satisfy Superior Court Civil Rule 9(b). The court also dismissed the breach of contract claim as barred under the SPA’s one-year contractual statute of limitations. VJ Holdings appealed: (1) challenging whether it pled sufficient facts to show pre-closing knowledge of fraud; and (2) challenged whether the Superior Court properly relied on a bootstrapping doctrine to dismiss the fraud claim. The Delaware Supreme Court reversed, finding that the allegations in the complaint, when viewed in the light most favorable to the non-moving party, lead to a reasonable inference that EBSCO knew of the structural defects in the building at the time of closing the SPA, contrary to its representation in the SPA that the building was in good operating condition and repair. As for the bootstrapping argument, the Supreme Court determined the Superior Court did not rely on a bootstrapping doctrine to dismiss the fraud claim. View "Valley Joist BD Holdings, LLC v. EBSCO Industries, Inc." on Justia Law

The Supreme Court affirmed the judgment of the trial court dismissing for lack of personal jurisdiction this complaint against Defendants, Board and More GmbH (B&M) and Emeram Capital Partners GmbH (Emeram), holding that Plaintiff, North Sales Group, LLC, failed to demonstrate that Defendants had sufficient minimum contacts with Connecticut.B&M was a limited liability company chartered under the laws of Austria, with its principal place of business in Austria. Emeram was a private equity investment limited liability company, with its principal place of business in Germany. Neither company had maintained an agent for service of process in Connecticut, nor did the companies maintain offices or transact business in Connecticut. At issue on appeal was whether Plaintiff advanced sufficient allegations and evidence to establish minimum contacts with Defendants. The Supreme Court held that Plaintiff did not and that the trial court correctly dismissed the case for lack of personal jurisdiction. View "North Sails Group, LLC v. Boards & More GmbH" on Justia Law

Eric Christiansen filed a nine-count complaint against respondents, Michael Moser and Potlatch #1 Financial Credit Union (“P1FCU”), following a decision by the Lewiston Roundup Association (“LRA”) to discontinue contracting with Christiansen to produce motorsport events at the LRA’s facility. The complaint alleged that Moser, a P1FCU employee and LRA member, improperly accessed information from Christiansen’s P1FCU account and shared it with the LRA so that it could recreate his business model and produce motorsport events without him. The district court granted summary judgment in the Respondents’ favor on each of Christiansen’s claims. Christiansen appealed, arguing that the district court erred in granting summary judgment because it failed to rule on Christiansen’s motion to compel discovery, failed to grant Christiansen more time to complete discovery, and failed to conclude that genuine issues of material fact precluded dismissal of four of Christiansen’s claims. The Idaho Supreme Court concluded after review that the district court abused its discretion by failing to decide Christiansen’s motion to compel discovery before considering the Respondents’ motions for summary judgment. Accordingly, judgment was reversed and the matter remanded for further proceedings. View "Christiansen v. Potlatch #1 FCU" on Justia Law

One beverage distributorship sued another and ultimately narrowed its lawsuit to a single tort claim for intentional interference with prospective economic advantage premised solely on the theory that the defendant had engaged in independently wrongful conduct by breaching a nondisclosure and non-circumvention agreement. This is an invalid theory as a matter of law under California Supreme Court precedent; an actor’s breach of contract, without more, is not “wrongful conduct” capable of supporting a tort, including the tort of intentional interference with prospective economic advantage. No one caught the error until the jury returned a special verdict in the plaintiff’s favor that was premised solely on the breach of the agreement.The court of appeal reversed. A jury’s special verdict for the plaintiff, based on conduct that does not constitute an actionable tort, cannot stand. Just as a trial court lacks subject matter jurisdiction to enter judgment for conduct that does not violate a criminal or civil statute, a trial court also lacks subject matter jurisdiction to enter judgment for allegedly tortious conduct, fashioned by common law, that the state’s highest court has determined is not tortious. A party’s conduct cannot confer subject matter jurisdiction upon a court, so the defendant’s delay in objecting is irrelevant. View "Drink Tank Ventures LLC v. Real Soda in Real Bottles, Ltd." on Justia Law